Good morning, ladies and gentlemen, and welcome to the Third Quarter 2012 CoreLogic, Incorporated Earnings Conference Call. My name is Chris, and I will be your conference moderator for today. [Operator Instructions] And at this time, I would now like to turn the conference over to your presenter for today, Mr. Dan Smith, Senior Vice President of Investor Relations. Sir, you may proceed.

Dan Smith

Thank you, and good morning. Welcome to our investor presentation and conference call where we present our financial results for the third quarter of 2012. Speaking today will be CoreLogic's President and CEO, Anand Nallathambi; and CFO, Frank Martell. Before we begin, let me make a few important points. First, we've posted our slide presentation, which includes additional details on our financial results on our website. Second, please note that during today's presentation, we may make forward-looking statements within the meaning of the Federal Securities laws, including statements concerning our expected business and operational plans, performance outlook and acquisition and growth strategies and our expectations regarding industry conditions. All of these statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For further details concerning these risks and uncertainties, please refer to our SEC filings, including the most recent annual report on Form 10-Q and subsequently filed 10-Qs.Our forward-looking statements are based on information currently available to us, and we do not intend and undertake no duty to update these statements for any reason. Additionally, today's presentation contains financial measures that are non-GAAP financial measures. A reconciliation of these non-GAAP measures to their GAAP equivalents is included in the appendix in today's presentation. Finally, unless specifically identified, comparisons of third quarter financial results to prior periods should be understood on a year-over-year basis. That is, in reference to the third quarter of 2011.Thanks. And now let me introduce our President and CEO, Anand Nallathambi.

Anand K. Nallathambi

Thank you, Dan, and good morning, everyone. Welcome to CoreLogic's Third Quarter 2012 Earnings Call. I will lead off with a recap of the quarter and year-to-date operating performance and then discuss emerging trends in the housing market and our focus for the balance of 2012. Frank will follow and cover our financial results, and we will end the call with Q&A. CoreLogic delivered strong double-digit revenue growth, with significantly higher levels of operating and net income, earnings per share, adjusted EBITDA and free cash flow in the third quarter. All 3 of our operating segments delivered top line growth and expanded margins in the third quarter. We're also ahead of our year-to-date targets for Project 30 cost reductions, free cash flow conversion, debt reduction and repurchases of our common stock.

In terms of revenue growth, continued strength in origination volumes and share gains in a number of our mortgage originations businesses, as well as higher property data and analytics sales, propelled our revenues to almost $410 million during the third quarter. This represents a year-over-year growth of approximately 18%. Revenues in our Mortgage Origination Services segment jumped 36% in the third quarter. The scale and market-leading positions of these businesses that make up the segment position us to capitalize on the current refinancing wave.

The Data and Analytics and Default Services segments also grew revenues by approximately 7% and 5%, respectively. For the first 9 months of 2012, CoreLogic revenues are up 17%, with our Mortgage Origination Services and Data and Analytics segments growing at double-digit rates. Our Default Services segment is up 3% for the year despite a contraction in overall market volumes. The company continued to drive significant cost productivity and improved profit margins in the third quarter. Progress in this area was evidenced by a 38% year-over-year increase in third quarter adjusted EBITDA and adjusted EBITDA margins of 29%, 430 basis points higher than last year. For the first 3 quarters of 2012, adjusted EBITDA is up 56% and adjusted EBITDA margins of almost 30%, 750 basis points higher than 2011. Project 30 is the single largest driver of CoreLogic's margin expansion in 2012. Project 30 savings together with increasing operating leverage in our servicing businesses have enabled the company to expand profit margins and, at the same time, reinvest significant amounts into the transformation of our business operations and technology infrastructure. Year-to-date, Project 30 has delivered $51 million in cost savings against a full year target of $60 million. Based on current run rates, we expect to modestly exceed our full year Project 30 target. We believe that our focus on profitable revenue growth together with the strong expansion of our adjusted EBITDA margins so far in 2012 demonstrates that the company is on the right trajectory to reach its target of at least 30% sustained EBITDA margins as we exit next year.

As I've stated on previous calls, a key focus for CoreLogic in 2012 is building our financial flexibility and returning capital to our shareholders. I'm pleased to report that we have made excellent progress in these areas. Over the first 9 months of 2012, we reduced outstanding debt by over 10% and bought back 10 million of our common shares. Since CoreLogic became an independent company a little over 2 years ago, we have repurchased over 15% of our outstanding common shares at prices significantly below current trading levels. A repurchase of significant numbers of our shares reflects our belief that even at current price levels, our common stock remains below its long-term strategic value. As we move forward, we plan to continue to focus on providing our shareholders with the highest possible returns generated through a combination of investing in the future growth of the company and efficient returns of capital.

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